Very Expensive Phones !!!!

moonpixiewitch

Hi
I was just perusing the internet and I stumbled across this
http://www.phonesonfinance.com/(X(1)A(KH20zYhyxwEkAAAAZTdhMzQ2ZjUtOTQwNy00Y2UyLWI2OGYtNWE4NjdiNWM5OTc5Ss3kxH8AeJuSjZk4YBDm9qrEsks1)S(l412eub2tv2ggb45z5w4zn55))/default.aspx?Source=330&AspxAutoDetectCookieSupport=1
thought it looked ok till i scrolled down the page
93.8% apr
I can't believe the cheek of it , preying on those with poor credit ratings (i myself am bankrupt) , how are they allowed to charge that much interest?
Does anyone ever buy phones from them ? I certainly would'nt!
:eek:

eyelinerprincess

Up to over 100% APR!

moonrakerz

You may find that these figures are not as bad as they look. I haven't read the advert but there may be monthly payments for line rental etc which now have to be included (by law) in the the APR calculation.

The sort of thing that happens is, if you are repaying £20 a month for the phone and £20 a month for rental, or whatever, the figure used for the APR calculation is £40 a month which makes the APR somewhat unrealistic !

smcaul

Nope, the figures quoted seem to be for a sim free phone!!!!!!

But to be fair to them, they have not hidden the APR, it is there bold as brass for all to see.

Can't understand why anyone would use them though.

Gorgeous_George

Example for a Nokia N73

Cash Price...........£479.99
Deposit................ £48.00
Amount of credit....£431.99
No. of weeks............40
Weekly rate............£14.04
Total payable........£609

So, interest = £129

That must work out expensive but not too unreasonable considering the risky customers that this advert attracts.

My N73 was a free upgrade on a £25 per month contract.



GG

darwin-rover

If you were in financial difficulty (ie bankrupt , in arrears , CCJs etc.) , do you really need the latest phone with all the bells and whistles ? You can buy pay as you go phones for less than £25 now .
The UK has no caps on interest rates , unlike a lot of other countries , so companies can charge what APR they like . I remember on Watchdog , an article about a lending company , who did door to door , and the interest rates on some of their loans sometimes worked out at over 1000% APR !!!

Gorgeous_George

Fully concur with your comments darwin-rover (is that as in MG Rover?)

Assuming someone is in serious financial trouble, they might buy a phone this way, sell it on and default on repayments. Thety would probably make £150 and could use this as a short-term fix to their problems.

Barmy, I know but desperate people do desperate things.



GG

deanos

98.3 is cheap check out Provident 177%

http://www.providentpersonalcredit.com/

Gorgeous_George

I guess that these rates seem to be a rip-off and I'm not about to defend them.

Of course, there are costs involved with setting up a credit agreement and maybe absorbing these into a low value loan makes the APR seem much worse.

A £999 arrangement fee for a mortgage at 5% would make the APR look horrendous if the mortgage was only for a one year.



GG

advent1122

If you want the latest mobile, but can't get credit - then Phones on Finance are here to help.

Errr.....Just buy a pay as you go for £20.
I may not be able to watch Sky News in 17 different languages on my phone but I can *gasp* phone people and it even has that new fangled texting thingy on it.

deanos

advent1122 wrote:

If you want the latest mobile, but can't get credit - then Phones on Finance are here to help.

Errr.....Just buy a pay as you go for £20.
I may not be able to watch Sky News in 17 different languages on my phone but I can *gasp* phone people and it even has that new fangled texting thingy on it.

Nobody on here is buying a phone on credit, the thread is about the op noticing a high interest charge:rolleyes: